BRIEFER ON THE

Philippines

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2019 Budget
Priorities
Framework
THE MACROECONOMIC CONTEXT FOR THE 2019 BUDGET
The proposed FY 2019 Budget
will be based on the following
macroeconomic assumptions: 2019 2020 2021 2022

Real Gross Domestic

7.0-8.0 7.0-8.0 7.0-8.0 7.0-8.0
Product (GDP) Growth (%)
Inflation (%) 2.0-4.0 2.0-4.0 2.0-4.0 2.0-4.0
364-Day T-Bill Rate (%) 2.5-4.0 2.5-4.0 2.5-4.0 2.5-4.0

Foreign Exchange
49-52 49-52 49-52 49-52
(PhP/US$)

London Interbank Offered

Rate (LIBOR), 6 months (%) 2.0-3.0 2.0-3.0 2.0-3.0 2.0-3.0

Exports (%)* 8.0 8.0 8.0 8.0

Imports (%)* 9.0 9.0 9.0 9.0

*Based on the Philippine Statistics Authority Trade Statistics

FISCAL PROGRAM
For 2019, the government will start to implement the annual cash-based appropriations system. Cash-based
appropriations for 2019 are projected at PhP3,468.5 billion.

Particulars
2019 2020 2021 2022
(in billion Pesos)

Revenues 3,202.6 3,600.4 4,009.7 4,485.0

Disbursements 3,781.8 4,238.0 4,712.1 5,259.3

Deficit (579.2) (637.6) (702.4) (774.3)

Cash Appropriations 3,468.5 3,886.9 4,712.1 5,259.3

For 2019, under a cash-based appropriations system, the budgets of line agencies are expected to
be lower than the 2018 spending levels, which are on an obligation-based system.
Annual Obligation-Based Budgeting Annual Cash-Based Budgeting
FAST FACT Time Horizon/Period
of Implementation
24 months & beyond 12 months

15 months (FY + 3-month

Period of Payment 24 months & beyond Extended Payment Period)
 BUDGET PRIORITIES
The PhP3,468.5 billion cash appropriations for 2019 will focus on investments in infrastructure development and
social services, consistent with the Administration’s goal of making the Philippines attain upper middle income status
and become a globally competitive economy by 2022.

Infrastructure Development

Some of the key infrastructure investments under the Build, Build, Build Program for 2019:

Metro Manila Luzon (outside Metro Manila)

Metro Manila Flood Management North-South Railway Project-Phase II

Project Phase 1 PhP2.5 B (Tutuban-Calamba-Batangas-Legaspi- PhP58.2 B
Matnog)
LRT Line 1 North Extension PhP600 M
(Common Station) PNR North 2 PhP39.9 B
Bonifacio Global City to Ortigas Center PhP500 M North-South Commuter Railway Project
Road Link Project PhP19.7 B
(Malolos-Tutuban)

Chico River Pump Irrigation PhP2.2 B

STOPO
P Arterial Road By pass Phase III PhP2.2 B

Visayas Mindanao

Mindanao Railway Project Phase 1

New Cebu International Container Port PhP1.9 B (TDD Segment) PhP2.2 B

New Bohol (Panglao) International Airport PhP754 M Malitubog-Maridagao Irrigation Phase II PhP1.5 B

Panay River Basin Integrated

Development Project PhP500 M Panguil Bay Bridge PhP907 M

Davao Airport PhP565 M

Social Services will continue to receive the largest share of the 2019
Social Services Budget to:

Provide support to Senior High School Intensify provision of quality nutrition through
(SHS) Graduates through Programs and projects under the Philippine Plan
Establishment of TechVoc laboratories of Action for Nutrition 2017-2022
Acquisition of TechVoc equipment Health advocacy campaigns
Strengthened partnership among Interventions for the first 1,000 days (exclusive
government agencies, academe, of breastfeeding and complementary feeding programs)
and the industry Promotion of healthy diet and lifestyle
Ensure financial sustainability
of education programs through Intensify the Tax Reform Cash Transfer Project through
Prohibition in the expansion Increase of unconditional cash grants
of existing programs and projects of state to PhP300 from PhP200 in 2018
universities and colleges (SUCs) P
Updating of the 2015 Listahanan
Full implementation of the Unified National
P
P

Harmonization of existing student financial P

assistance programs Identification System

Pursue a disability- and Indigenous Peoples
Produced by the Department of Budget and Management
(IP)-inclusive society through Budget Information and Training Service
Development of a registry of Persons with Disabilities (PWDs) www.dbm.gov.ph
and IPs for more effective government interventions